Koho vs EQ Bank 2026: Which Canadian No-Fee Account Wins?
TL;DR
EQ Bank wins for payroll + savings if you qualify for the direct-deposit bonus (2.75%, real bank, ATM rebates). Koho wins on free-tier interest (2.00% with no deposit requirement, up to 3.50% on Everything) plus cashback and credit building. They're complementary, not competing — many Canadians keep both.
Side by side
| Feature | EQ Bank Personal | Koho (Essential / Extra / Everything) |
|---|---|---|
| Base interest rate | 1.00% | 2.00% / 2.50% / 3.50% |
| Direct deposit bonus | +1.75% (→ 2.75%) | No additional bonus |
| Monthly fee | $0 | $0 / paid / paid |
| Card type | Mastercard prepaid (EQ Card) | Mastercard prepaid |
| Cashback | 0.5% on all purchases | 1% / 2% (Extra) on categories |
| ATM fees | Reimbursed in Canada | Free at THE EXCHANGE network |
| Outgoing e-Transfer | Free, unlimited | Free, unlimited |
| Credit building | No | Yes (+$7/mo add-on) |
| Joint accounts | Yes | No |
| US-dollar account | Yes (US Dollar Account) | No |
| CDIC coverage | Yes ($100K/category) | Yes ($100K/category) |
Where EQ Bank pulls ahead
- Direct-deposit bonus. 2.75% on every dollar with a qualifying direct deposit is competitive against most challenger banks. No minimum balance required to earn it.
- Real bank. EQ Bank is Equitable Bank — a Schedule I federally regulated bank. Some people just sleep better with that.
- ATM fee rebates. Use any ATM in Canada and EQ refunds the operator fee. Koho only goes free at THE EXCHANGE network.
- Joint accounts. Critical for couples managing shared expenses.
- USD account. Hold US dollars without converting back and forth.
- GICs and TFSA. EQ has the full ladder of registered products in the same app.
Where Koho pulls ahead
- Cashback ceiling. Koho Extra hits 2% on three categories you choose; EQ caps at 0.5% flat.
- Credit building. The $7/mo Credit Building feature reports to Equifax — see Koho Credit Building review. Genuinely useful for newcomers and credit rebuilders.
- Goals + spending insights. The savings goals UX and spend categorization are noticeably better than EQ's.
- Cover (overdraft alternative). $20–$250 short-term cover for low-balance situations.
Who should pick which
Pick EQ Bank if you…
- Have a regular paycheque you can direct-deposit (the bonus rate matters)
- Want a real Schedule I bank, not a fintech
- Need joint accounts, USD accounts, or in-app GICs
- Pull cash from random ATMs more than once a month
Pick Koho if you…
- Spend a lot on debit and want category cashback
- Are building or rebuilding credit (newcomers especially)
- Want the best savings-goals UX in Canada
- Don't need a joint or USD account
Or just use both
The smartest setup we see: EQ Bank for payroll + savings (collect 2.75% with the direct-deposit bonus, no fee, ATM rebates, real bank), and Koho for everyday debit spending (cashback, credit building if needed). Each gets separate CDIC coverage so you're insured up to $200K total. No conflict.
Related guides
- Full Koho Review 2026
- Koho Credit Building Review 2026
- Neo vs Koho vs Wealthsimple Cash 2026
- Live HISA rates in Canada
Not financial advice. Rates and features can change at any time. Verify on each provider's official site before signing up. We do not accept referral commissions. Last reviewed: July 11, 2026.
Editorial disclaimer
This article is published by LoonieLabs for general information only. It is not financial, tax, legal, accounting, or immigration advice and must not be relied on as such. Rules, dollar figures, interest rates, and program eligibility change — always verify with the Canada Revenue Agency, IRCC, or a qualified professional before acting. Spotted an error? See our corrections policy. Last reviewed: July 11, 2026.
Frequently Asked Questions
Written and reviewed by Shrey Patel — Founder & Editor-in-Chief
Winnipeg, MB · Figures cross-checked against official banking & credit sources · Last reviewed July 11, 2026 · LinkedIn
Founder of LoonieLabs · based in Winnipeg, MB · writes and reviews every page on the site I oversee every figure on this page personally — verified against primary sources (CRA, IRCC, Statistics Canada, the Bank of Canada, or the originating provincial ministry). LoonieLabs has no affiliate relationships with any bank, credit card, or immigration consultant featured on this site. Spotted a mistake? Tell us.
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